Motivation II: Equity, Expectancy, and Goal Setting

1
Chapter Seven
Motivation II Equity, Expectancy, and Goal
Setting
2
Chapter Seven Outline

• Adams Equity Theory of Motivation
• The Individual-Organization Exchange Relationship
• Negative and Positive Inequity
• Expanding the Equity Concept
• Practical Lessons from Equity Theory
• Expectancy Theory of Motivation
• Vrooms Expectancy Theory
• Research on Expectancy Theory and Managerial
  Implications

3
Chapter Seven Outline (continued)

• Motivation Through Goal Setting
• Goals Definition and Background
• How Does Goal Setting Work?
• Insights from Goal Setting Research
• Practical Applications of Goal Setting
• Putting Motivational Theories to Work

4
Adams Equity Theory

• People strive for fairness and justice in social
  exchanges
• Cognitive perception of fairness or lack of it
  affects behavior
• Inputs education, skills, training, effort,
  etc.
• Outputs pay, fringe, security, recognition, etc.

5
Negative and Positive Inequity
A. An Equitable Situation
Other
Self
6
Negative and Positive Inequity (cont)
7
Negative and Positive Inequity (cont)
C. Positive Inequity
Other
Self
8
Equity Sensitivity
Equity Sensitivity is an individuals tolerance
for negative and positive equity.

• Benevolents
• Sensitives
• Entitleds

9
Organizational Justice

• Distributive Justice The perceived fairness of
  how resources and rewards are distributed.
• Procedural Justice The perceived fairness of the
  process and procedures used to make allocation
  decisions.
• Interactional Justice
  The perceived fairness of the decision
  makers behavior in the process of
  decision making.

10
Lessons in Equity Theory

• Pay attention to what employees perceive to be
  fair and equitable
• Allow employees to have a voice
• Employees should have opportunity to appeal
• Organizational changes, promoting cooperation,
  etc. can come easier with equitable outcomes
• Failure to achieve equity could be costly
• Climate of justice

11
Vrooms Expectancy Theory Concepts
Expectancy Belief that effort leads to a
specific level of performance
Instrumentality A performance ? outcome
perception.
Valence The Value of a reward or outcome
12
Managerial Implications of Expectancy Theory

• Determine the outcomes employees value.
• Identify good performance so appropriate
  behaviors can be rewarded.
• Make sure employees can achieve targeted
  performance levels.
• Link desired outcomes to targeted levels of
  performance.
• Make sure changes in outcomes are large enough to
  motivate high effort.
• Monitor the reward system for inequities.

13
Organizational Implications of Expectancy Theory

• Reward people for desired performance, and do not
  keep pay decisions secret.
• Design challenging jobs.
• Tie some rewards to group accomplishments to
  build teamwork and encourage cooperation.
• Reward managers for creating, monitoring, and
  maintaining expectancies, instrumentalities, and
  oucomes that lead to high effort and goal
  attainment.
• Monitor employee motivation through interviews or
  anonymous questionnaires.
• Accommodate individual differences by building
  flexibility into the motivation program.

14
Goals
Goal What an individual is trying to accomplish.
Directing ones attention
Regulating ones effort
Task performance
Goals motivate the individual by...
Increasing ones persistence
Encouraging the development of goal- attainment
strategies or action plans
15
Insights from Goal-Setting Research

• Difficult Goals Lead to Higher Performance.-
  Easy goals produce low effort because the goal is
  too easy to achieve.- Impossible goals
  ultimately lead to lower performance because
  people begin to experience failure.
• Specific Difficult Goals Lead to Higher
  Performance for Simple Rather Than Complex
  Tasks.- Goal specificity pertains to the
  quantifiability of a goal.- Specific difficult
  goals impair performance on novel, complex
  tasks when employees do not have clear strategies
  for solving these types of problems.
• Feedback Enhances The Effect of Specific,
  Difficult Goals.- Goals and feedback should be
  used together.

16
Insights from Goal-Setting Research(continued)

• Participative Goals, Assigned Goals, and Self-Set
  Goals Are Equally Effective.- Managers should
  set goals by using a contingency approach.
  Different methods work in different situations.
• Goal Commitment and Monetary Incentives Affect
  Goal-Setting Outcomes.- Difficult goals lead to
  higher performance when employees are committed
  to their goals.- Difficult goals lead to lower
  performance when employees are not committed to
  their goals.- Goal based incentives can lead to
  negative outcomes for employees in complex,
  interdependent jobs requiring cooperation.
  Employees may not help each other. Quality
  may suffer as employees pursue quantity goals.
  Commitment to difficult goals may suffer.

17
Guidelines for Writing SMART Goals

• Specific
• Measurable
• Attainable
• Results oriented
• Time bound